Binders are used by students and professionals to store loose leaf papers and other loose items. The binders typically include a binding mechanism, such as a conventional three ring binder, to bind the papers together. However, many papers, such as hand-outs, photocopies, large or irregular-sized papers, and the like do not have pre-punched holes. In these cases, holes must be punched in the papers using a hole punch mechanism before the papers can be received in the binder. However, a hole punch may not always be readily available, and it can be difficult to predict when a hole punch may be needed. Furthermore, standard hole punches can be quite bulky and heavy, and therefore inconvenient to carry. Accordingly, there is a need for a binder that can form holes into a paper such that the papers can be received in the binding mechanism of the binder.